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Ontario's Liberal government released its budget for 2014-2015 on Thursday. These are the highlights.
Ontario Budget Highlights
(01 of08)
Kathleen Wynne's Liberal government delivered its 2014-2015 budget on Thursday. Here's what you need to know.With files from The Canadian Press (credit:CP)
Revenue down, spending up(02 of08)
- The deficit is expected to rise to $12.5 billion next year from $11.3 billion in 2013-14, before falling to $8.9 billion in 2015-16. The Liberals say they still plan to balance the books by 2017-18.- Revenues are down almost $1.2 billion from the budget projections for 2013-14 to an estimated $115.6 billion.- Program spending will grow next year by almost $3 billion.- Net debt ballooned to $269.2 billion for the year ending March 31 from $252.1 billion the previous year, leaving a debt-to-GDP ratio of 38.9 per cent, which is expected to grow to 40.3 per cent next year. (credit:Getty)
Tax hike for the well off(03 of08)
There will be a new tax rate of 12.16 per cent on income between $150,000 and $220,000. The 13.16 per cent tax rate for incomes above $514,000 will now apply to incomes above $220,000. (credit:Getty)
Tobacco tax hike(04 of08)
The budget increases the tobacco tax from 12.35 cents a cigarette to 13.975 cents or $3.25 on a carton of 200, but the tax rate on cigars remains unchanged at 56.6 per cent. (credit:Getty)
A new retirement plan(05 of08)
- The budget proposes a new Ontario Retirement Pension Plan for people without a workplace pension will require contributions from employers and workers of 1.9 per cent of salary. Someone earning $70.000 a year would pay $1,263 into the pension plan and their employer would match that amount. The new plan would be introduced in 2017. (credit:Alamy)
An aviation fuel tax hike(06 of08)
Pricier flights? They could be on the way. - The budget would hike the provincial tax on aviation fuel by four cents a litre over four years. (credit:CP)
Lots of spending - Here's the big stuff(07 of08)
The budget has lots of new spending.- $29 billion over 10 years for public transit, roads, bridges and infrastructure.- $11.4 billion over 10 years for hospital expansion and redevelopment projects.- $11 billion over 10 years to repair, upgrade and build new elementary and high schools.- $2.5 billion over 10 years for a new jobs fund which would give grants to corporations.- $1 billion to help build a road to the remote Ring of Fire mineral deposit in northern Ontario, but the money is contingent on getting matching funds from the federal government. (credit:CP)
The spending: the smaller stuff(08 of08)
Here are some of the smaller spending initiatives in the budget.- $810 million over three years for community supports for adults with developmental disabilities.- $294 million for a program that helps prevent homelessness.- $32 million to expand school breakfast and lunch programs.- Replace the Northern Allowance for people on social assistance with a Remote Communities Allowance adding $50 a month for the first person and $25 a month for each additional family member. (credit:CP)